CHANDUMULL BENGANEY Vs. NATIONAL BANK OF INDIA, LTD

JUDGEMENT

(1.) This is an appeal from the judgment of Mr. Justice Greaves in a suit for recovery of money on the basis of what is described, as a letter of credit. The material facts relevant for the determination of the rights of the parties are really beyond controversy.

(2.) The plaintiffs carry on business in Calcutta as exporters of jute against orders placed with them by approved constituents. They allege that this export business was carried on by them in co-partnership with the firm of Udoychand Pannalall who have been joined as defendants, upon their refusal to join as plaintiffs. On the 25 November, 1920, the contesting defendant, the National Bank of India, Ltd. wrote to the defendant firm the following letter: We beg to inform you that we are in receipt of advice by wire from our London Office, that a confirmed irrevocable oredit has been opened under which we are authorised to negotiate your bills, as offered on Messrs. Mildred Goyenche & Co., to the extent of ?16,875 (sixteen thousand eight hundred and seventy-five only) on the following conditions: Bills to be drawn payable three months, after sight and to be accompanied by invoices, full sets of Bill of Lading, made out to order and blank endorsed, and policies of Insurance war risk representing shipment of 2,000 (two thousand) bales jute marked (Jajodia over M) from Calcutta to Antwerp, during November- December, 1920. Such shipping documents are to be delivered on acceptance of the bills and should bear the following clause : - Drawn under cable credit No...dated 22nd November, 1920. Please note that this advice does not release you from the liability attaching to the drawer of a Bill of Exchange.

(3.) The credit will expire on- When negotiating drafts please produce this letter to have the amounts recorded on the back thereof. P.S. - Under present conditions we can give no undertaking to negotiate bills drawn under this credit.